Publications

TRACIT publications

A key objective of TRACIT is to improve the knowledge base by publishing cutting-edge research on critical issues that can reshape government policy and action to control illicit trade. Watch this space for TRACIT's recent publications.

The Human Cost of Illicit Trade: Exposing demand for forced labor in the dark corners of the economy (December 2021)

Among the worst crimes associated with illicit trade is the demand it creates for forced and child labor. The TRACIT report, The Human Cost of Illicit Trade: Exposing demand for forced labor in the dark corners of the economy, studies an overlooked corner of the global economy, namely the incidence of forced labor in illicit market activities. The report shows that women, children and men of all ages and race are forced to labor in illicit sectors, where they are abused by organized criminals in their pursuit of profits.

The Human Cost of Illicit Trade: Exposing demand for forced labor in the dark corners of the economy

Examining the negative impacts of illicit trade on SDG 16 (February 2021)

The TRACIT report, "Examining the negative impacts of illicit trade on SDG 16", is part of TRACIT’s contribution to the partnership approach embodied in SDG 17 and a means by which business, the public sector and civil society can more effectively achieve the SDGs. The report updates key findings from the 2019 Mapping the Impact of Illicit Trade on the Sustainable Development Goals to focus on the criminal elements underpinning illicit trade and their relationship to SDG 16. Additionally, it incorporates observations during the COVID-19 pandemic, which show that criminal groups have swiftly exploited the situation and entrenched their positions in illicit trade.

Examining the negative impacts of illicit trade on SDG 16

The Link Between Illicit Trade and Sovereign Credit Ratings (January 2021)

The TRACIT report, "The Link Between Illicit Trade and Sovereign Credit Ratings", investigates whether a correlation can be established between individual countries’ creditworthiness and their vulnerability to illicit trade. The report compares the credit ratings attributed by S&P Global, Fitch Group and Moody's and the scores attributed by the Global Illicit Trade Environment Index, and finds that countries that are poorly equipped to tackle illicit trade also suffer from poor credit worthiness.

The Link Between Illicit Trade and Sovereign Credit Ratings

Prohibition, Illicit Alcohol and Lessons Learned from Lockdown (January 2021)

The TRACIT report, "Prohibition, Illicit Alcohol and Lessons Learned from Lockdown", analyzes the economic and social impacts of strict restrictions on the production and/or consumption of alcohol (dry laws) during the early stages of the COVID19 outbreak, with a specific focus on the consequences associated with illicit trade. The report suggests that crisis-driven COVID-19 related prohibitions on alcoholic beverages have generated a number of negative health-related externalities and promoted the development of parallel illicit markets.

Prohibition, Illicit Alcohol and Lessons Learned from Lockdown

Tackling Illicit Trade in ASEAN (November 2020)

TRACIT has joined with the EU-ASEAN Business Council (EU-ABC) to issue a report that sheds light on the growing problem of illicit trade in the Association of South East Asian Nations (ASEAN). The report, titled, “Tackling Illicit Trade in ASEAN”, comes at a time when illicit trade is gaining momentum in ASEAN and as officials prepare for the upcoming 14th ASEAN Ministerial Meeting on Transnational Crime (AMMTC). The paper investigates various forms of illicit trade in the region, the affected industry sectors and provides critical insight on how government and industry leaders can work together to introduce regulatory changes to confront this pressing issue.

Tackling Illicit Trade in ASEAN

Fraudulent Advertising Online: Emerging Risks and Consumer Fraud (July 2020)

Fraudulent advertising is rapidly emerging as a new risk to consumers shopping online, where millions of consumers are exposed to thousands of fraudulent advertisements taking them to thousands of illegitimate e-commerce websites that defraud and/or sell counterfeit products and deceitful services. This report from TRACIT and the American Apparel and Footwear Association investigates and points out that Internet-based platforms for social networking and shopping from home have inherent systemic weaknesses that are exploited by criminals to sell any variety of counterfeit or illegal product with little risk of apprehension. The lack of sufficient policies and procedures to verify an advertiser’s true identity and limited vetting during the onboarding process are identified as the main vulnerabilities that enable fraudulent advertising online.

Fraudulent Advertising Online: Emerging Risks and Consumer Fraud

lllicit Trade in South Africa: Challenges and Solutions (October 2019)

South Africa is one of the largest and most diversified economies in Africa. The country has a well-established manufacturing base, is a major supplier of goods and services to the continent, has a large consumer base, serves as a regional transport hub, has a strong tourism and financial sector, as well as robust traditional sectors such as agriculture and mining. This diversification, however, means that South Africa also faces challenges from illicit trade on multiple fronts. This publication explores the situation in South Africa and highlights a number of regulatory and legal mechanisms that the government can implement to better control and combat illicit trade.

lllicit Trade in South Africa: Challenges and Solutions

lllicit Trade in Alcohol in India: Challenges and Solutions (September 2019)

Illicit trade in alcohol is widespread, representing significant percentages of alcohol consumption worldwide and stripping governments of billions of dollars in tax revenues. In almost all cases, illicit trade in alcohol results in serious health risks to consumers, revenue loss, and brand degradation for legitimate manufacturers, as well as reduced tax revenue for governments. This publication explores the situation in India and the causes for the flourishing trade in illicit alcohol. The problem in India is exacerbated by the massive size of the country, the federal structure, diverse drinking patterns, the varied regulatory structure and regional nuances and traditions that characterize the alcohol market. Notably, the report highlights a number of regulatory and legal mechanisms that the government can implement to better control and combat illicit alcohol.

lllicit Trade in Alcohol in India: Challenges and Solutions

lllicit Trade in Alcohol in Costa Rica: Challenges and Solutions (September 2019)

Illicit trade in alcohol is widespread, representing significant percentages of alcohol consumption worldwide and stripping governments of billions of dollars in tax revenues. In almost all cases, illicit trade in alcohol results in serious health risks to consumers, revenue loss, and brand degradation for legitimate manufacturers, as well as reduced tax revenue for governments. This publication explores the situation in Costa Rica and highlights a number of regulatory and legal mechanisms that the government can implement to better control and combat illicit alcohol.

lllicit Trade in Alcohol in Costa Rica: Challenges and Solutions (English)
Comercio Ilícito de Alcohol en Costa Rica: Desafíos y Soluciones (Español)

Mapping the Impact of Illicit Trade on the Sustainable Development Goals (July 2019)

From smuggling, counterfeiting and tax evasion, to the illegal sale or possession of goods, services, humans and wildlife, illicit trade is compromising the attainment of the UN Sustainable Development Goals (SDGs) in significant ways. In order to help governments and business better understand how their efforts to achieve sustainable development must account for the negative forces of illicit trade, this study maps the UN SDGs against 12 sectors that participate significantly in international trade and are particularly vulnerable to illicit trade.

Visit the Mapping the Impact of Illicit Trade on the Sustainable Development Goals page to see the report.

Size and Shape of the Global Illicit Alcohol Market (November 2018)

Illicit trade in alcohol is widespread, representing significant percentages of alcohol consumption worldwide and stripping governments of billions of dollars in tax revenues. According to Euromonitor International, 1 in 4 alcohol bottles are illicit, representing 25.8% of all global consumption.

Visit the Illicit Alcohol page for the Euromonitor Global Study on Illicit Alcohol and associated country reports.

Global Illicit Trade Environment Index (June 2018)

The Global Illicit Trade Environment Index is commissioned by TRACIT and produced by The Economist Intelligence Unit (EIU). The Index evaluates 84 countries on their structural capability to guard against illicit trade, highlighting specific strengths and weaknesses across 25 policy, legal, regulatory, economic, trade, institutional and cultural indicators.

EIU Global Report and Regional Briefings
Building on the Index data, the EIU has published several papers that cover the global and regional results, focusing on how economies score on the Index, and delving into which regional economies are taking the most action, and which ones are doing little to address this issue.

TRACIT Policy Recommendations
TRACIT has prepared a set of policy recommendations inspired by the thematic categories upon which the Index was constructed. The recommendations are universal in nature, providing a “checklist” of fundamental measures governments can implement to improve their ability to defend against illicit trade.

Global Report